Associates guide to IR35
It is commonplace for many people working in the contract or temporary employment market to use a Limited
Company through which they are paid. These companies are referred to, when used in this way, as Personal
Services Companies (PSCs). Such arrangements are considered by HMRC under an arrangement known
as IR35, something as a Director of a PSC you should be aware of.
IR35 is not new, in fact it became law in 2000 as part of the Government’s plans to clamp down on the growing
use of PSCs to provide professional services to clients, where the individual was still working in a manner
similar to a traditional ‘employee’, but enjoying the tax benefits of a corporate structure.
Central to your position is the determination made to decide whether the role you are performing falls inside
or outside IR35 and from April 2021 this assessment will be made by your clients – in other words the business
for whom you work for – because they will now be responsible for any unpaid employment tax liabilities.
This guide is designed to help you understand IR35 regulation and the impact it will have on you in 2021 so
you can prepare appropriately for what will be one of the biggest changes for the contract worker market.